Cerberus May Tap Lazard for Freedom Group Sale

Cerberus Capital Management LP is in discussions with investment bank Lazard Ltd. about running an auction for Freedom Group Inc., the gun manufacturer the buyout firm decided to sell in the wake of last week’s school shooting in Newtown, Conn., said people close to the talks.

Lazard hasn’t been hired yet and Cerberus could end up picking another bank to auction the gun maker, the people said. Cerberus could finalize hiring a bank to sell Freedom Group in coming days, one of the people said.

While it isn’t assured Lazard will end up advising Cerberus on Freedom Group’s sale, the bank is a likely choice, the people said, because Cerberus has a close relationship with the investment bank. Frank A. “Terry” Savage, a top banker at Lazard, is close to Cerberus chief executive Stephen A. Feinberg and sits on Freedom Group’s board.

In addition, Cerberus could also hire a larger bank, alongside Lazard, to help market the gun manufacturer, one of the people said, though the private-equity firm hasn’t made any decisions.

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